Average Crop Revenue Election

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Stored: Average Crop Revenue Election

Average Crop Revenue Election
Type Program
Sponsor Organization Farm Service Agency
Top Organization Department of Agriculture
Creation Legislation Food, Conservation, and Energy Act of 2008 (Public Law 110-246)
Website Website
Purpose Average Crop Revenue Election program, run by the U.S. Department of Agriculture through its Farm Service Agency, aids farmers against revenue drops, stabilizing income for crops like corn and soybeans nationwide.
Program Start 2009
Initial Funding $500 million
Duration 2009–2018 (discontinued, but historical data informs current programs)
Historic Yes

The Average Crop Revenue Election (ACRE), established in 2009 under the Food, Conservation, and Energy Act of 2008, was administered by the Department of Agriculture (USDA) through its Farm Service Agency (FSA) to provide revenue guarantees to farmers, allocating over $5 billion during its existence to support approximately 500,000 farms annually from 2009 to 2018. Initially funded with $500 million, it distributed up to $1 billion annually in peak years (e.g., 2011), insuring crops like corn and soybeans at farms nationwide.[1] Despite its impact, challenges like complex eligibility, limited uptake, and replacement by newer programs like Agriculture Risk Coverage (ARC) led to its discontinuation in 2018 (web ID: 5), but it remains a historical benchmark for USDA risk management efforts.

Official Site

Goals

  • Stabilize farm income by protecting against revenue losses from low crop prices or poor yields at state and farm levels.
  • Encourage risk management and agricultural sustainability through a revenue-based safety net for program crops.
  • Provide an alternative to traditional counter-cyclical payments, reducing dependency on fixed price supports.[2]

Organization

The ACRE program was managed by USDA’s Farm Service Agency, overseen by Administrator Zach Ducheneaux since 2022, with regional FSA offices and county committees implementing policies under federal oversight. It operated via annual appropriations, guided by the Food, Conservation, and Energy Act of 2008.[3]

Partners

History

Authorized by the Food, Conservation, and Energy Act of 2008 (Public Law 110-246) and launched in 2009 with $500 million, the ACRE program expanded with annual appropriations, peaking at $1 billion annually in 2011.[4] It insured 500,000 farms annually until 2018, addressing farm risks with innovations like state-level revenue guarantees (web ID: 5). By 2018, it had funded over $5 billion, but was replaced by ARC under the Agricultural Improvement Act of 2018, leading to its discontinuation (web ID: 5).

Funding

Initial funding of $500 million in 2009 supported the program’s launch, with over $5 billion appropriated from 2009 to 2018 via annual USDA budgets—e.g., $1 billion in FY 2011.[5] It operated under the Food, Conservation, and Energy Act until its discontinuation in 2018, funded through federal allocations and producer payments.

Implementation

ACRE distributed revenue guarantees annually, requiring farmers to enroll program crops and submit historical data, tracked via FSA’s program management system.[6] It progressed through partnerships with agricultural organizations—e.g., 500,000 farms yearly—and program adjustments, but was discontinued in 2018 due to complexity and low uptake (web ID: 5).

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References